Tesla’s sales volume in Quebec plummeted by a staggering 87% during the first quarter of 2025, a precipitous decline compared to the same period in the preceding year.
Canada’s core market has reached saturation point, with no new Tesla vehicles being imported.
In Quebec, Canada’s premier electric vehicle (EV) market, the province boasts the highest rate of adoption for new plug-in cars.
It’s largely due to incentives, abundant low-cost hydroelectric power, and a strong foundation of electric vehicle enthusiasts.
Given the prominent role of Quebec as a key market for Tesla, its importance cannot be overstated.
Notwithstanding its significant presence in Quebec just a few years ago, Tesla’s market share has vanished.
Despite not having comprehensive data on Canadian auto registrations for the first quarter, Le Devoir secured access to Quebec-specific information through the Société d’assurance vehicle du Québec, revealing that Tesla sold just 524 vehicles in Quebec during Q1 2025.
Sales have plummeted by a staggering 87% compared to Q1 2024.
The temporary halt in Quebec and federal electric vehicle (EV) incentives led to a significant drop in demand, but the pause also coincided with a quarter-end deadline, sparking a sense of urgency among buyers and driving up sales as they rushed to make purchases before the window closed.
Despite this development, Tesla found itself entangled in controversy when it submitted thousands of disputed claims for incentives worth approximately $42 million CAD, only to later attribute the issue to a backlog of unfilled delivery requests.
As tensions escalate between the US and Canada, Tesla’s reputation takes a hit in Quebec and beyond due to CEO Elon Musk’s support for Donald Trump, whose inflammatory rhetoric has sparked outrage by suggesting the US annex Canada.
Tesla’s Canadian Troubles aren’t over
While Q1 2025 presented risks, a potentially more challenging Q2 may be on the horizon. In April, Tesla was forced to increase prices in Canada due to the country’s government imposing 25% tariffs on its vehicles in retaliation for US President Trump’s trade disputes.
Declining demand, soaring prices, and waning enthusiasm towards Tesla in Canada and Quebec have led to a paltry number of sales in this region.
According to a reliable source familiar with the situation, Tesla has no intention of importing additional vehicles into the country for the current quarter due to sluggish demand.
In Canada, the overall electric vehicle (EV) market suffered a significant slump of 45% in the first quarter, largely attributed to the temporary suspension of government incentives. Nevertheless, Tesla’s performance fell precipitously, suggesting factors beyond just the absence of subsidies at play?
Electrek’s Take
In this challenging context, Tesla’s situation in Canada is arguably more dire than its European counterpart currently. While not the largest market by size, Canada’s electric vehicle (EV) adoption rate surpasses that of the United States, contributing to Tesla’s success in North America.
As long as tariffs persist on Canadian imports, prospects for Tesla’s success in the country remain bleak.
Although Trump’s presidency is likely to end soon, the controversy surrounding his administration’s trade policies and Elon Musk’s perceived support for these policies will continue to have significant implications for Tesla. Specifically, Musk’s past endorsements of Trump and his comments downplaying Canada’s sovereignty will likely remain a major point of contention, even after the current administration is eliminated.
As Tesla’s roster continues to mature and narrow, its reliance on the Model Y becomes increasingly problematic, with even a moderate refresh failing to reignite sluggish sales.
Being optimistic about Tesla right now is utterly draining?
Canada currently holds a limited supply of the newly released Model Y from Tesla, which was successfully secured prior to the implementation of tariffs. Are you looking to purchase a Cybertruck? If so, you’re in luck – there are plenty available. As I anticipate, you seem to believe that the situation will unfold more favorably in the future, given your assumption that expenses will decrease over time?
